Questions & Answers
What happens to a bank loan in case of job loss?
Salam,
I have been working in the UAE for 7 years. A week ago, my employer threatened me with termination. I have a bank liability of around 164,000.00 AED in a form of a personal loan and I fear that in case of losing the job I will not be able to pay off my loan as I have no savings.
After reading, I understand that I shall have to face a criminal proceeding if I am not able to pay off my loan (as it becomes due in its entirety in case of loss of job) and also imprisonment.
Whatever it may be, I need to know more about it. I was informed by a friend that if a person notifies the bank about this default and termination, then the proceedings shall start and the defaulter shall either be imprisoned or fined.
Will appreciate it if someone can guide me on how things shall be in case I get terminated and the loan amount becomes due and this situation turns into a civil/criminal case.
Best Regards,
Hi Sir,
Regarding your inquiry, if you cannot pay your loan to the bank, then yes; the bank can file criminal and civil cases against you.
We as lawyers can settle your matter with the bank or we can deal with the cases filed by the bank. In a criminal proceeding, your punishment can be jail or fine but in a civil case, it should be calculated by how much you paid to the bank.
For more details, please contact us via phone.
Kind Regards,
Eman Al Ali Advocates
Dear questioner,
When you default on a bank loan, then the bank can initiate criminal as well as civil proceedings against you in order to recover the pending amount.
Kindly contact us directly for a detailed discussion!
If need be, kindly contact us via phone for a detailed discussion or write us an email for further assistance.
